Deutsche Asset & Wealth Management to Launch the First U.S. ETF to Directly Invest in China A-shares
Deutsche Asset & Wealth Management announces the launch of db X-trackers Harvest CSI 300 China A-Shares Fund (NYSE ticker: ASHR), an exchange-traded fund (ETF) that offers a direct investment opportunity in the world’s second largest economy.1 The fund will be listed on NYSE Arca beginning Wednesday, November 6.
ASHR is the first U.S.-listed ETF to provide investors direct equity exposure to the many Chinese sectors and companies that are available exclusively via the China A-shares market, in which foreign investment has historically been limited.
“As a truly global bank, we are uniquely positioned to provide global access and perspective to U.S. investors,” said Jerry Miller, Head of Asset & Wealth Management Americas. “Unprecedented and sophisticated products such as ASHR exemplify our strategic vision for the exchange-traded products business in the Americas.”
In order to bring this groundbreaking new fund to market, Deutsche Asset & Wealth Management has partnered with the experienced team at Harvest Global Investments Limited, a wholly owned subsidiary of Deutsche Bank Group’s asset management joint venture in China, Harvest Fund Management Co., Ltd.
“Harvest is very pleased to collaborate with Deutsche Asset & Wealth Management to list the db X-trackers Harvest CSI 300 China A-Shares Fund on the New York Stock Exchange,” explains Dr. Henry Zhao, Chairman of Harvest Global Investments. “ASHR will provide American investors with direct access to China A-shares with the added benefit of our depth of experience as one of the most established Chinese fund management companies.”
Harvest Fund Management Co., Ltd is the second-largest asset management company in China, with in excess of $47 billion in assets under management.2 Harvest Global Investments Limited’s status as a Renminbi Qualified Foreign Institutional Investor (RQFII) enables it to obtain a RQFII quota on behalf of ASHR.
“ASHR will provide American investors with direct access to a key international market for the first time, as other ETFs that seek to provide exposure to China A-shares must do so indirectly via derivatives or other instruments,” said Martin Kremenstein, Head of Passive Asset Management for Deutsche Asset & Wealth Management Americas. “This milestone ETF demonstrates our commitment to introducing first-of-their-kind products that use innovative strategies to fill previously unmet gaps in investor demand.”
China A-shares are equity securities issued by companies incorporated in mainland China, demoninated and traded in the Chinese renminbi. Controls imposed by the Chinese government limit direct investments in A-shares, and only a very restricted pool of foreign investors have been approved as Qualified Foreign Institutional Investors or Renminbi Qualified Foreign Institutional Investors by the China Securities Regulatory Commission.
ASHR seeks to track the CSI 300 Index, which includes the 300 largest and most liquid securities trading on the Shanghai and Shenzhen Stock Exchanges.
Deutsche Asset & Wealth Management’s U.S. exchange-traded products (ETP) platform was the first to provide U.S. investors with convenient access to broad-based commodity exposure when it launched in 2006. Currently the platform has $12 billion in assets under management. The Deutsche Asset & Wealth Management global ETP platform, which was launched in 2006, has risen to become the fifth largest in the world with approximately $66 billion in assets under management as of September 30, 2013.3
For more information about the ETPs available in the U.S., visit: http://www.dbxus.com.
For further information, please call:
Deutsche Bank AG
Press and Media Relations
Phone: +1 (212) 250 - 6853
1 Source: United Nations National Accounts Main Aggregates Database: http://unstats.un.org/unsd/snaama/dnllist.asp
2 Source: Harvest Global Investments, data as of June 30, 2013
3 Source: Deutsche Bank, Bloomberg Finance LP, Reuters
Deutsche Asset & Wealth Management
With approximately $1.2 trillion of assets under management (as of September 30, 2013), Deutsche Asset & Wealth Management is one of the world's leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
Deutsche Asset & Wealth Management is the brand name for the Asset Management & Wealth Management-division of Deutsche Bank AG and its subsidiaries. The responsible legal entities offering clients products or services of Deutsche Asset & Wealth Management are listed in the respective contracts, sales materials and other product information documents.
Harvest Global Investments Limited
Harvest Global Investments Limited was amongst the first few Chinese asset Managers in Hong Kong to obtain Renminbi Qualified Foreign Institutional Investor (RQFII) status in China and has successfully launched 4 RQFII products including 2 RQFII ETFs.
Harvest Global Investments Limited is a wholly owned subsidiary of Harvest Fund Management, China’s second largest asset manager by assets. Harvest Group has managed China A-share passive strategies since 2005 and as of end June 2013 manages 18 index funds including 7 ETFs with total asset under management in excess of $10 billion.
Consider the fund‘s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at dbxus.com. Please read it carefully before investing.
RISKS: International investing involves greater and different risks than investing in U.S. companies and funds investing in a single country or in a limited geographic region tend to be more volatile than more diversified funds. Emerging markets, such as China, tend to be more volatile than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Special risks associated with investments in Chinese companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards, the nature and extent of intervention by the Chinese government in the Chinese securities markets; and the potential unavailability of A shares.
The CSI 300 Index tracks the performance of 300 stocks traded on the Shanghai and Shenzhen stock exchanges. It is not possible to invest directly in an index.
An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the greater risks associated with investments in China.
db X-trackers funds are distributed by ALPS Distributors, Inc. The Fund is managed by DBX Advisors LLC and is sub-advised by Harvest Global Investments Limited, neither of which are affiliated with ALPS. The Fund is not FDIC insured, there is no bank guarantee and it may lose value.
Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services.
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